People are now chasing safety amid directionless market...

There is always time to buy and then time to sell....

At other times, there are time to sit still and wait.....

When you sell to raise cash, you need to have another target in mind. If not target you end up holding cash....

Don't buy/sell for the sake of buying & selling only, must have a plan...

Magnum? Already told you previously bah..

This post has been edited by gark: Apr 23 2014, 02:37 PM

Let me give a simple example...

Company A.. Price RM 1, EPS 0.10, Dividend per year RM 0.10, zero growth per year for EPS and Divvy

Company B.. Price RM 1, EPS 0.10, Dividend per year RM 0.03, 10% grow per year for EPS and Divvy

Company A dividend yield = 10% = Wow! Where to find such yield...

Company B dividend yield = 3% = Cheh! like useless FD only..

And somehow they continue to trade at reasonable PE 10x....

But...

If you have a long term view...

can you calculate in 10 years, what will be your TOTAL earnings?

Which share will be more valuable?



This post has been edited by gark: Apr 23 2014, 02:45 PM

whip out your excel... make your calculation first.. see can get right answer or not?

I work in palm oil related... not necessary refinery...

This post has been edited by gark: Apr 23 2014, 02:50 PM

But Company A.. is still DY 10% wor... 7% still cannot catch up... how?

So company B still better? or not?

Calculate it and you will see what i mean..

This post has been edited by gark: Apr 23 2014, 02:56 PM

only by calculating you will get enlightenment..

You put RM 10000 in both company A and B and collect dividend.. then 10 years later sell off both shares.

Which one will give you a higher TOTAL earnings?

We ignore interest rate from dividend received for now.

Ya ya ya... give the numbers lah..

or not you cannot see how much.

Anyway I give you answer.

Company A
Invest 10,000 shares @ RM 1 = RM 10,000
10 years of dividend received = RM 10,000
Shares sold @ RM 1 @ PE 10x = RM 10,000
Total received = RM 20,000

Total Earnings = RM 20,000 - RM 10,000 = RM 10,000

CAGR 7.81%, Not too bad eh?

Company B
Invest 10,000 shares @ RM 1 = RM 10,000
10 years of dividend received = RM 4,781
Shares sold @ RM 2.35 @ PE 10x = RM 23,500
Total received = RM 28,281

Total Earnings = RM 28,281 - RM 10,000 = RM 18,281

CAGR 10.96% ...

So.. is buying on yield better or buying on growth better?

See what i mean?

This post has been edited by gark: Apr 23 2014, 03:13 PM

You calculate reinvest and see how?

Company A on linear earnings...

Company B on exponential earnings...

exponential > linear..

This post has been edited by gark: Apr 23 2014, 03:22 PM

what is the difference between total return and piece by piece return?

Earnings is all about total cash received in hand...

Still dont want to see the big picture eh?

This post has been edited by gark: Apr 23 2014, 04:00 PM

I support you via WB...

Hahaha... sell the stock ... not cold hard cash ah? then what?...

Ok want to talk divvy....

what if hold 20 years, company B dividend yield on cost is now how much? Still beats Company A..... hands down.

However you want to manipulate, the answer is out there...

growth > divvy..

This post has been edited by gark: Apr 23 2014, 04:04 PM

Same lah.. mother kah son kah..all related, i support you via WB.

This post has been edited by gark: Apr 23 2014, 04:05 PM

Pinky needs to answer this...

Apa itu semi-kfc trader...

Good share, decent growth, ok divvy,...

That means people who are undecided on what they want.. so they dabble in everything.. end up holland.